Hi tax tutor in the notes we are told that an improvement to an asset is disallowed as opposed to a repair which is allowed. In practice question 10 one of the expenses is decorating the office which has not been adjusted for in the answer. Would decorating the office not be classed as an improvement to an asset and therefore disallowable? Thank you in advance, Angela
Decorating or indeed redecorating as it would be is an allowable revenue expense, it is not capital – this is routine maintenance that needs to take place that simply returns the property to its original decorated appearance.